Unlocking High-Yield Dividend Opportunities in the Middle East Amid Geopolitical Uncertainty

The Middle East’s non-oil sectors are emerging as a beacon of stability and growth, even as geopolitical tensions persist. For income-focused investors, the region’s strategic reforms—particularly under Saudi Arabia’s Vision 2030 and broader GCC diversification efforts—have created fertile ground for high-yield dividend stocks. Three standout names—Air Arabia PJSC, Alinma Bank, and Avrupakent Gayrimenkul Yatirim Ortakligi—exemplify the blend of dividend sustainability, earnings resilience, and alignment with regional economic goals.

Air Arabia PJSC: Navigating Volatility with Strategic Expansion

Air Arabia PJSC (DFM:AIRARABIA) offers a forward dividend yield of 6.72% as of Q2 2025, supported by a payout ratio of 78.3% covered by earnings [2]. While its dividend history has shown volatility, the airline’s recent Q2 net profit of AED 415 million—despite regional disruptions—demonstrates operational resilience [3]. The company’s strategic alignment with Saudi Vision 2030 is evident in its expansion plans, including a new low-cost carrier in Dammam. This venture, targeting underserved markets and secondary airports, aligns with the kingdom’s goal to liberalize aviation and boost tourism [1]. Air Arabia’s demand-driven approach and fleet modernization further underscore its adaptability in a shifting landscape.

Alinma Bank: A Pillar of Financial Inclusion and Stability

Alinma Bank (ANB), Saudi Arabia’s largest Islamic bank, reported a 11.06% year-on-year profit increase to SAR 1.57 billion in Q2 2025, driven by a 6% rise in net financing income [4]. Its forward dividend yield of 6.28% is underpinned by a conservative payout ratio of 66.6% supported by earnings and 42.1% by cash flows [5]. The bank’s CET1 ratio of 16.6% and focus on SME financing and digital banking align with Vision 2030’s emphasis on financial inclusion and economic diversification [6]. Despite a 22-basis-point decline in net interest margin, Alinma’s strong capital position and growth in non-interest revenue highlight its ability to navigate interest rate fluctuations and regulatory shifts.

Avrupakent Gayrimenkul Yatirim Ortakligi: Real Estate Resilience in a High-Yield Shell

Avrupakent Gayrimenkul Yatirim Ortakligi (AVPGY), a Turkish real estate investment trust (REIT), offers a compelling 7.71% dividend yield with a payout ratio of just 16.2%—well below its 50% threshold—ensuring robust sustainability [7]. Its debt-free balance sheet and 98% occupancy rates in logistics and commercial properties across Istanbul and Ankara position it as a low-risk, high-yield play. AVPGY’s alignment with GCC infrastructure goals is evident in its focus on trade corridors and logistics hubs, which benefit from regional trade connectivity initiatives [8]. The REIT’s geographic diversification and conservative leverage further insulate it from macroeconomic shocks.

Strategic Resilience in a Fragmented Landscape

These three stocks reflect a broader trend: non-oil sectors in the Middle East are increasingly becoming engines of growth. Air Arabia’s aviation expansion, Alinma’s financial inclusion, and AVPGY’s real estate stability all align with regional reforms aimed at reducing oil dependency. For investors, the key is to prioritize companies with strong earnings coverage, conservative payout ratios, and explicit ties to structural reforms. While geopolitical risks remain, these firms’ strategic positioning and financial discipline make them attractive for long-term income portfolios.

Source:
[1] Air Arabia CEO Adel Al Ali on the strategy behind ..., [https://gulfbusiness.com/adel-alali-on-the-strategy-behind-air-arabia-rise/]
[2] Air Arabia PJSC (DFM:AIRARABIA) Dividend Yield, History ..., [https://simplywall.st/stocks/ae/transportation/dfm-airarabia/air-arabia-pjsc-shares/dividend]
[3] Air Arabia reports AED 415 million net profit in Q2 2025 ..., [https://timesofindia.indiatimes.com/world/middle-east/air-arabia-reports-aed-415-million-net-profit-in-q2-2025-despite-regional-disruptions/articleshow/123297039.cms]
[4] Alinma Bank Q2 2025 profit jumps 11% to SAR 1.57B on lending, [https://saudistandard.com/2025/07/24/alinma-bank-q2-2025-profit/]
[5] Alinma Bank Reports Earnings Results for the Second ..., [https://www.marketscreener.com/news/alinma-bank-reports-earnings-results-for-the-second-quarter-and-six-months-ended-june-30-2025-ce7c5fd2df8ef42c]
[6] High-Yield Dividend Opportunities in the Middle East, [https://www.ainvest.com/news/high-yield-dividend-opportunities-middle-east-navigating-volatility-avrupakent-gayrimenkul-osmanli-yatirim-arab-national-bank-2508/]
[7] High-Yield Dividend Stocks in the Middle East: A Strategic Play ..., [https://www.ainvest.com/news/high-yield-dividend-stocks-middle-east-strategic-play-resilient-income-diversification-2508/]
[8] Saudi Arabia Approves Major New Airline Based in ..., [https://skift.com/2025/07/21/saudi-arabia-approves-new-airline-based-in-dammam/]